Diesel prices reached a record level in Oklahoma, adding new cost pressure across transportation, agriculture, construction and the state’s oil and gas industry. On September 19, AAA reported an Oklahoma diesel average of $6.01 per gallon, up from $5.77 one week earlier, $5.03 one month earlier and $3.27 a year ago. Regular gasoline averaged $4.06 per gallon. Oklahoma City and Tulsa diesel prices were both approximately $5.99.
The increase reflects tight global fuel supplies and energy-market disruption associated with conflicts involving Iran and Russia. Although crude oil receives most of the attention, diesel is a critical input across the economy. Higher prices immediately affect trucking and rail transportation before being passed through to retailers, manufacturers and consumers.
The financial impact is already becoming visible. J.B. Hunt Transport Services warned that rising fuel and driver expenses could contribute to a 5%–10% sequential decline in third-quarter earnings per share. The company identified at least a $10 million sequential fuel headwind, while diesel prices increased approximately 10% from July to August and continued rising through September.
For Oklahoma’s oil and gas sector, $6 diesel raises the cost of moving drilling rigs, water, sand, equipment and produced fluids. Drilling contractors, pressure pumpers, trucking companies and other field-service providers may need to introduce fuel surcharges or renegotiate rates. Operators could also become more selective about marginal drilling, workover and maintenance projects as transportation costs increase.
Author: phinds